Ricoh Europe: 84 per cent of consumers prepared to take action over irrelevant and non-personalised communications

10.2.2016 09:00 | Business Wire

Del

The inundation of irrelevant communications and junk mail is pushing
European consumer loyalty to breaking point with the majority (84 per
cent) ready to take action against brands, according to new research
commissioned by Ricoh
Europe.

Irrelevant communications, both online and paper-based, are a huge
bug-bear for more than two-thirds of consumers in Europe, who consider a
quarter of what they receive to be junk. Six-in-ten consumers even see
junk mail as more frustrating than their commute to work.

Beyond the mere frustration factor, consumers are suffering negative
consequences from being unable to sift through the flood of irrelevant
information and poor quality comms. A quarter (25 per cent) have missed
a payment deadline, and over a third have been unsure how much they owe
for a service (34 per cent) or missed offers they were entitled to (39
per cent).

Brands need to beware that irrelevant communications are having a
significantly detrimental impact on customer loyalty, trust and spend,
and consumers are unafraid to bite back. Two-thirds (65 per cent) of
consumers report feeling less loyal to a brand spamming with irrelevant
information, whilst a similar number would also spend less (63 per cent)
and even go so far as to stop being a customer completely (57 per cent).
Nearly a fifth of consumers have moved their custom elsewhere, another
fifth have complained to a service provider, and 1-in-10 have taken
their complaint to an authoritative body.

David
Mills, CEO of Ricoh Europe, said: “When it comes to the irrelevance
and volume of communication sent out by brands and service providers,
consumers are clearly saying enough is enough. It’s never been easier to
communicate instantly with customers, but in the digital age, it’s
likewise never been easier to spam. Brands need to tread carefully not
to scupper the effectiveness of vital communication channels. With
severe penalties in place for getting it wrong and consumers ready to
walk away, hitting the right note at the right time is key. An
increasingly competitive business landscape, an influx of highly
ambitious start-ups and the simple fact that customers expect more from
providers, means the need for quality, customised communications – both
digital and paper-based – has never been greater.”

A majority of consumers (64 per cent) believe more could be done to
tailor communications to their individual circumstances. 8-in-10 would
even be willing to share personal data to make this happen, including
occupation, salary, Internet browsing habits and health records.

Consumers also increasingly view digital communications as their
preferred method to receive information from brands and service
providers: for new offers and upgrades (74 per cent), statements and
bills (67 per cent) and updates to terms and conditions (64 per cent).

Mills continues: “Consumers want to feel like a company has taken the
time to get to know them as an individual and stop bombarding them with
both confusing and meaningless information. The appropriate use of
consumers’ data is critical for this. No matter whether they have a
preference for digital communications – such as online bank statements –
or a mix of electronic and paper-based, there’s no excuse not to use
this insight to ensure communications are bespoke, which in turn makes
them genuinely effective.”

The industries viewed as currently sending the most relevant
communications to consumers are the public sector (42 per cent),
financial services (39 per cent), utilities (37 per cent) and healthcare
(36 per cent). With the exception of utilities, these industries were
similarly seen to be the most trustworthy handlers of customer data.
However, no single sector is viewed positively by more than half of
consumers, which goes to show significant work still needs to be done by
brands across all industries to bring confidence in their customer
communications up to scratch.

“To do this, businesses need to streamline how they collect, distribute
and manage data to ensure its consistent use across all channels.
Information provided by customers setting-up their account or
store-cards, for example, should be used to create promotional offers
and updates that are not only personal to the individual, but also
highly relevant to their circumstances. This results in the customer
feeling valued, which ultimately drives loyalty and benefits to the
business,” concludes Mills.

Ricoh is a global technology company specializing in office imaging
equipment, production print solutions, document management systems and
IT services. Headquartered in Tokyo, Ricoh Group operates in about 200
countries and regions. In the financial year ending March 2015, Ricoh
Group had worldwide sales of 2,231 billion yen (approx. 18.5 billion
USD).

The majority of the company's revenue comes from products, solutions and
services that improve the interaction between people and information.
Ricoh also produces award-winning digital cameras and specialized
industrial products. It is known for the quality of its technology, the
exceptional standard of its customer service and sustainability
initiatives.

Under its corporate tagline, imagine. change. Ricoh helps
companies transform the way they work and harness the collective
imagination of their employees.